Which Is True of Normal Profits

question 87

Multiple Choice

Which is true of normal profits?

• A) They are necessary to keep a firm in the industry in the long run.
• B) They are zero under pure competition in the long run.
• C) They are excluded from a firm's costs of production.
• D) They are greater than the opportunity cost to the firm.

Understand the process and implications of buying stocks on margin and the impact of varying margin requirements.

Grasp the concept of short selling, including its mechanics, risks, and profit potential.

Recognize the various types of orders investors can place in the stock market and their strategic uses.

Understand the structure and function of electronic communication networks (ECNs) and their advantages over traditional markets.

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Definitions:

Personal Space

An area two to four feet from a person; it is the closest zone a stranger or business acquaintance is normally allowed to enter.

Consent

The agreement or permission granted by an individual for something to happen, often provided after being informed about what will happen.

Social Meaning

The significance or interpretation of a behavior, practice, symbol, or object within the social or cultural context it exists.

Verbally

Through spoken words; orally.